ABSTRACT: We examine whether and how individual auditors affect audit outcomes using a large set of archival Chinese data. analyze approximately 800 find that they exhibit significant variation in quality. The effects have on quality are both economically statistically significant, pronounced small firms. also the auditor can be partially explained by characteristics, such as educational background, Big N firm experience, rank firm, political affiliation. Our findings highlight importance...

Abstract This paper examines the linkages between discretionary accruals (DAs), managerial share ownership, management compensation, and audit fees. It draws on theory that managers of firms with high ownership are likely to use DAs communicate value‐relevant information, while accounting‐based compensation opportunistically manage earnings improve their compensation. OLS regression results 648 Australian show (1) there is a positive association fees; (2) negatively affects relationship (3)...

ABSTRACT This paper extends the literature on role of political economy in financial reporting and auditing by testing two hypotheses. The first hypothesis predicts that there will be a greater increase audit effort fees for Malaysian firms with connections, as result Asian crisis, than non‐politically connected because these have higher risk misstatements. second politically decline when capital controls are introduced government ploy to financially assist rebound from thus reduces results...

SYNOPSIS Using a sample of 2,200 U.S. listed firm-year observations (2001–2007), this study shows positive (negative) relation between gender diversity on corporate boards and analysts' earnings forecast accuracy (dispersion), after controlling for quality, governance, audit stock price informativeness, potential endogeneity. Our findings are important as they suggest that board adds to the transparency financial reports such expectations likely be more accurate these firms.

ABSTRACT We examine the effects of city-level auditor industry specialization and scale economies on audit pricing in United States. Using a sample Big N clients for 2000–2007 period, measure based percentile rankings number at city-industry level, we document significant premiums discounts both pre- post-Sarbanes-Oxley Act (SOX) periods. However, are highly interactive. The negative effect fees obtains only specialist auditors. By contrast, non-specialist auditors obtain when they enjoy...

Abstract We examine whether the presence of female directors and audit committee members affect quality in terms effort auditor choice by using observations from a sample U.S. firms, spanning years 2001–2011. find, after controlling for endogeneity other board, firm, industry characteristics, that firms with gender‐diverse boards (audit committees) pay 6 percent (8 percent) higher fees are (7 more likely to choose specialist auditors compared all‐male committees). Our findings suggest...

This study examines the relationship between a firm's internal monitoring mechanism and its impact on audit fee. The first hypothesis investigates whether firms with independent corporate boards (chief executive officer chairman being separate individuals) provide more effective are thus associated lower control risk, resulting in effort fees as compared to nonindependent, CEO-dominated boards. second effectiveness of provided by is firms' growth opportunities. High-growth nature difficult...

This study examines whether the impact of nonaudit fees on auditor independence is contingent tenure. The results, based a sample 4,720 U.S. firms for years 2000 and 2001, show that there positive association between discretionary current accruals, proxy independence, with short tenure not more than three years. These findings suggest may impair when long. Furthermore, exploratory analyses earnings management significant small clients but large clients. Taken together, these results upon...

Abstract This study examines the interacting effects of management accounting systems (MAS) and perceived environmental uncertainty on small business managers' perceptions their performance. Results obtained from using a multiple regression partial derivative analyses responses to questionnaires distributed sample 42 managers/owners light engineering manufacturing firms in Australia, confirmed hypothesis that MAS performance were dependent uncertainty. Under high levels uncertainty,...

ABSTRACT: Short-term debt and credit ratings have benefits for financial reporting quality that may be associated with lower audit fees. Using U.S. data 2003 through 2006, we find short-term is negatively related to fees firms rated by Standard & Poor’s, consistent more monitoring better governance mechanisms in higher debt. Credit fees, reflecting a firm’s liquidity risk, mechanisms, from rating agencies. We also the negative relation between stronger low-quality ratings, auditors...

ABSTRACT Using a large sample of U.S. firms spanning the period 2000–2010, we document strong positive association between sensitivity CEO compensation portfolio to stock return volatility (vega) and audit fees. We also show that vega fees is weaker in post-Sarbanes-Oxley Act (SOX) period. In supplementary tests, relation stronger for with older CEOs where chairman board. Collectively, our results suggest incorporate executive risk-taking incentives they charge their services. JEL...